Trader: Meet Thy Judge

 

 

 

 

 

 

If you are a longer term trend follower and there is a long term trend, then you make money.

If you are a shorter term trend follower and their is a trend in your trade you make money.

Swing traders make money in range bound markets.

Value investors make money when buyers agree and move in to scoop up the value play bidding it up.

Day traders tend to do well when their is volatility and a wide daily range to trade.

Momentum traders make money when break outs follow through and run.

Growth stock investors are winners when growth stocks are in favor.

Can Slim investors are winners in bull markets.

Short option plays generally make money in non-trending markets.

Long option plays need a trend to unlock profits.

When the market acts in correlation to technical analysis the practitioner of technical analysis wins.

A bull in a bull market makes money and a bear in a bear market makes money if their entries and exits are robust.

Profits are a function of the market’s actions not under the power of the trader and investor. When you realize your job is to trade your edge and let the market decide if you win or lose things get a lot more simple than when you are trying to ‘beat’ the market. You do not want to beat the market, you want to be on the same team as the market doing exactly what it is telling you to do based on your own proven system.

All of the above trading and investing styles make money if they manage risk per trade and trade their style with discipline and focus so that in the long run they generate big wins and small losses.

Ultimately the market is the judge, jury, and executioner, all we can do is plead or case with every entry and take or punishment with every stop loss exit.